Exhibit 1
For Immediate Release
Pointer Telocation Reports 2012 Financial Results
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·
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Annual revenues of $85 million
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·
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2012 adjusted EBITDA - $10.6 million compared to $9.4 million in 2011
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·
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2012 Non-GAAP net income of $5.9 million compared to $3.9 million in 2011
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Rosh HaAyin, Israel March 4th, 2013 Pointer Telocation Ltd. (Nasdaq CM: PNTR) - a leading developer, manufacturer and operator of Mobile Resource Management (MRM) and roadside assistance services for the automotive industry, announced today its financial results for the fiscal year ended December 31, 2012.
Financial Highlights
Revenues: Pointer's total revenues for 2012 decreased 1% to $85 million compared to $85.9 million in 2011.
International activities for 2012 accounted for revenue of $22.3 million (26% of total revenues) compared to $23.7 million in 2011 (28% of total revenues).
Revenues from products in 2012 decreased 2% to $30.4 million (36% of revenues) compared to $31 million (36% of revenues) in 2011.
Pointer’s revenues from services in 2012 decreased 1% to $54.4 million (64% of revenues) compared to $54.8 million (64% of revenues), in 2011.
Gross Profit: In 2012, gross profit was $28 million (33% of revenues) compared to $28.9 million (34% of revenues) in 2011.
Operating Income (loss): Operating income was $5.1 million in 2012 compared to an operating loss of $2.6 million in 2011.
Net Income (loss): Pointer recorded a net income of $1.2 million or $0.23 per share compared to net loss of $8.5 million, or $1.79 loss per share, in 2011.
Non GAAP net income: Pointer recorded non-GAAP net income of $5.9 million during 2012, as compared to non-GAAP net income of $3.9 million in 2011.
Adjusted EBITDA: Pointer’s adjusted EBITDA for 2012 was $10.6 million compared to $9.4 million in 2011.
David Mahlab, Pointer's Chief Executive Officer, commented on the results: “We succeeded in basically maintaining our revenue level – it was eroded by approximately $1million or 1% vs. 2011 as we faced a tough economic situation worldwide and especially in Europe. Much more important to note is that we have returned to profitability GAAP based, improving our bottom line significantly vs. 2011 despite basically maintaining our level of revenues year over year. Now we are launching a new driver behavior solution which, together with additional product releases planned later this year, should help us maintain our position in the market and help us face the economic situation worldwide. We are continuing in our efforts to improve results especially in view of our business in Latin America.”
Conference Call Information:
Pointer Telocation's management will host today, Monday, March 4th, 2013 a conference call with the investment community to review and discuss the financial results, and will also be available to answer questions.
The conference call will commence at 10:30 AM EST, 16:30 PM Israel time.
To participate in the call, please dial in to one of the teleconferencing numbers below. Please begin placing your call at least 5 minutes before the time set for the commencement of the conference call.
From USA: + 1-888-668-9141, From Israel: 03-918-0650
A replay will be available from March 5th, 2013 at the company website: www.pointer.com
Reconciliation between results on a GAAP and Non-GAAP basis.
Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Condensed Interim Consolidated Statements of Cash Flows.
Pointer uses adjusted EBITDA and non-GAAP net income as a non-GAAP financial performance measurement.
We calculate adjusted EBITDA by adding back to net income, net loss from discontinued operations, financial expenses, taxes, depreciation, the effects of non-cash stock-based compensation expense, amortization and non-cash impairment of goodwill and intangible assets.
We calculate non-GAAP net income by adding back to net income, net loss from discontinued operations, the effects of non-cash stock based compensation expenses, amortization of intangibles related to acquisitions and non-cash tax expenses resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill.
The purpose of such adjustments is to give an indication of our performance exclusive of non-GAAP charges that are considered by management to be outside of our core operating results.
Adjusted EBITDA and non-GAAP net income are provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company’s business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. We believe that these non-GAAP measures help investors to understand our current and future operating cash flow and performance, especially as our acquisitions have resulted in amortization and non-cash items that have had a material impact on our GAAP profits. Adjusted EBITDA and non GAAP net income should not be considered in isolation or as a substitute for comparable measures calculated and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.
About Pointer Telocation:
Pointer Telocation is a leading provider of technology and services to the automotive and insurance industries, offering a set of services including Road Side Assistance, Stolen Vehicle Recovery and Fleet Management. Pointer has a growing list of customers and products installed in more than 45 countries. Cellocator, a Pointer Products Division, is a leading AVL (Automatic Vehicle Location) solutions provider for stolen vehicle retrieval, fleet management, car & driver safety, public safety, vehicle security and more. The Company's top management and the development center are located in the Afek Industrial Area of Rosh Ha'ayin, Israel.
For more information: http://www.pointer.com
Forward Looking Statements
This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of the Company. The words "believe," "expect," "anticipate," "intend," "seems," "plan," "aim," "should" and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of the Company with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in the markets in which the Company operates and in general economic and business conditions, loss or gain of key customers and unpredictable sales cycles, competitive pressures, market acceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this press release. Various risks and uncertainties may affect the Company and its results of operations, as described in reports filed by the Company with the Securities and Exchange Commission from time to time. The Company does not assume any obligation to update these forward-looking statements.
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Contact:
Zvi Fried, V.P. and Chief Financial Officer
Tel.; 972-3-572 3111
E-mail: zvif@pointer.com
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Chen Livne, Gelbart-Kahana Investor Relations
Tel: 972-3-607 4717, +972-54-302 2983
E-mail: chen@gk-biz.com
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POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
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December 31,
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||||||||
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2012
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2011
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ASSETS
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||||||||
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CURRENT ASSETS:
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||||||||
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Cash and cash equivalents
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$ | 3,685 | $ | 1,468 | ||||
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Restricted cash
|
108 | 123 | ||||||
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Trade receivables
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16,215
|
14,427 | ||||||
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Other accounts receivable and prepaid expenses
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2,069 | 1,946 | ||||||
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Inventories
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3,982 | 4,467 | ||||||
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Total current assets
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26,059
|
22,431 | ||||||
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LONG-TERM ASSETS:
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||||||||
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Long-term accounts receivable
|
582 | 805 | ||||||
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Severance pay fund
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9,034 | 7,474 | ||||||
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Property and equipment, net
|
10,364 | 10,839 | ||||||
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Investment and long term loans to affiliate
|
814 | 266 | ||||||
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Other intangible assets, net
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2,242 | 3,030 | ||||||
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Goodwill
|
47,190 | 44,493 | ||||||
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Total long-term assets
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70,226 | 66,907 | ||||||
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Total assets
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$ |
96,285
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$ | 89,338 | ||||
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
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December 31,
|
||||||||
|
2012
|
2011
|
|||||||
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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||||||||
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Short-term bank credit and current maturities of long-term loans
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$ | 11,129 | $ | 13,208 | ||||
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Trade payables
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11,248 | 9,821 | ||||||
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Deferred revenues and customer advances
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6,954 | 6,890 | ||||||
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Other accounts payable and accrued expenses
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7,251 | 7,440 | ||||||
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Total current liabilities
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36,582 | 37,359 | ||||||
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LONG-TERM LIABILITIES:
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||||||||
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Long-term loans from banks
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9,339 | 7,715 | ||||||
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Long-term loans from shareholders and others
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925 | 943 | ||||||
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Other long-term liabilities
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3,765 | 2,895 | ||||||
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Accrued severance pay
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10,328 | 8,625 | ||||||
| 24,357 | 20,178 | |||||||
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COMMITMENTS AND CONTINGENT LIABILITIES
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EQUITY:
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Pointer Telocation Ltd’s shareholders' equity:
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Share capital
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3,871 | 3,353 | ||||||
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Additional paid-in capital
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120,613 | 119,147 | ||||||
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Accumulated other comprehensive income
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798 | 837 | ||||||
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Accumulated deficit
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(95,534
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) | (96,743 | ) | ||||
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Total Pointer Telocation Ltd’s shareholders' equity
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29,748
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26,594 | ||||||
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Non-controlling interest
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5,598 | 5,207 | ||||||
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Total equity
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35,346
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31,801 | ||||||
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Total liabilities and shareholders' equity
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$ |
96,285
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$ | 89,338 | ||||
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
U.S. dollars in thousands (except per share data)
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Year ended December 31,
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2012
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2011
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2010
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Revenues:
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Products
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$ | 30,402 | $ | 31,140 | $ | 25,415 | ||||||
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Services
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54,430 | 54,778 | 48,448 | |||||||||
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Total revenues
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84,832 | 85,918 | 73,863 | |||||||||
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Cost of revenues:
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||||||||||||
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Products
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17,988 | 18,283 | 14,175 | |||||||||
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Services
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38,573 | 37,249 | 31,264 | |||||||||
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Amortization and impairment of intangible assets
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181 | 1,498 | 978 | |||||||||
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Total cost of revenues
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56,742 | 57,030 | 46,417 | |||||||||
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Gross profit
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28,090 | 28,888 | 27,446 | |||||||||
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Operating expenses:
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Research and development
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2,716 | 3,082 | 2,532 | |||||||||
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Selling and marketing
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9,067 | 8,932 | 7,441 | |||||||||
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General and administrative
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9,232
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11,450 | 9,062 | |||||||||
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Amortization of intangible assets
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1,987 | 1,821 | 1,774 | |||||||||
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Impairment of goodwill and intangible asset
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- | 6,216 | - | |||||||||
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Total operating expenses
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23,002
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31,501 | 20,809 | |||||||||
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Operating income (loss)
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5,088
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(2,613 | ) | 6,637 | ||||||||
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Financial expenses, net
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1,628 | 1,779 | 1,976 | |||||||||
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Other expenses, net
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5 | 77 | 21 | |||||||||
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Income (loss) before taxes on income
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3,455
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(4,469 | ) | 4,640 | ||||||||
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Taxes on income
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861 | 2,383 | 1,524 | |||||||||
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Income (loss) after taxes on income
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2,594
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(6,852 | ) | 3,116 | ||||||||
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Equity in losses (gains) of affiliate
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(38 | ) | 1,634 | 1,158 | ||||||||
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Income from continuing operations
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2,632
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(8,486 | ) | 1,958 | ||||||||
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Loss from discontinued operations, net
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995 | - | - | |||||||||
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Net income (loss)
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$ |
1,637
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$ | (8,486 | ) | $ | 1,958 | |||||
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
U.S. dollars in thousands (except per share data)
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Year ended December 31,
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||||||||||||
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2012
|
2011
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2010
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Other comprehensive income (loss):
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||||||||||||
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Currency translation adjustments of foreign operations
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299 | (2,605 | ) | 2,128 | ||||||||
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Realized losses on derivatives designated as cash flow hedges
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224 | (219 | ) | 29 | ||||||||
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Unrealized losses on derivatives designated as cash flow hedges
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14 | (162 | ) | 124 | ||||||||
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Total comprehensive income (loss)
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2,174
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(11,472 | ) | 4,239 | ||||||||
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Profit from continuing operations attributable to:
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||||||||||||
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Equity holders of the parent
|
1,203
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(8,527 | ) | 1,130 | ||||||||
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Non-controlling interests
|
434
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41 | 828 | |||||||||
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1,637
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(8,486 | ) | 1,958 | |||||||||
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Loss from discontinued operations attributable to:
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||||||||||||
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Equity holders of the parent
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630 | - | - | |||||||||
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Non-controlling interests
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365 | - | - | |||||||||
| 995 | - | - | ||||||||||
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Total comprehensive income (loss) attributable to:
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||||||||||||
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Equity holders of the parent
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1,170
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(10,982 | ) | 2,881 | ||||||||
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Non-controlling interests
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1,004 | (490 | ) | 1,358 | ||||||||
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2,174
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(11,472 | ) | 4,239 | |||||||||
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Earnings (loss) per share attributable to Pointer Telocation Ltd's shareholders:
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Basic net earnings (loss) per share
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$ |
0.23
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$ | (1.78 | ) | $ | 0.24 | |||||
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Diluted net earnings (loss) per share
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$ |
0.23
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$ | (1.79 | ) | $ | 0.22 | |||||
The accompanying notes are an integral part of the interim consolidated financial statements.
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
|
Year ended December 31,
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||||||||||||
|
2012
|
2011
|
2010
|
||||||||||
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Cash flows from operating activities:
|
||||||||||||
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Net income (loss)
|
$ |
1,637
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$ | (8,486 | ) | $ | 1,958 | |||||
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Adjustments required to reconcile net income to net cash provided by operating activities:
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Depreciation, amortization and impairment
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5,546 | 12,710 | 5,568 | |||||||||
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Accrued interest and exchange rate changes of debenture and long-term loans
|
118 | 135 | 178 | |||||||||
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Accrued severance pay, net
|
91 | 487 | (364 | ) | ||||||||
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Gain from sale of property and equipment, net
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(271 | ) | (95 | ) | (93 | ) | ||||||
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Equity in losses of affiliate
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(38 | ) | 1,634 | 1,158 | ||||||||
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Amortization of stock-based compensation
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265 | 515 | 121 | |||||||||
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Impairment loss of loan to minority shareholder in subsidiary
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- | 489 | - | |||||||||
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Decrease (increase) in restricted cash
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15 | 10 | (133 | ) | ||||||||
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Increase in trade receivables, net
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(1,572
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) | (1,462 | ) | (1,618 | ) | ||||||
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Decrease (increase) in other accounts receivable and prepaid expenses
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46 | 373 | (436 | ) | ||||||||
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Decrease (increase) in inventories
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395 | (1,035 | ) | (1,964 | ) | |||||||
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Write-off of inventories
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337 | 304 | 185 | |||||||||
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Deferred income taxes
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- | 170 | 1,322 | |||||||||
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Decrease (increase) in long-term accounts receivable
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234 | (177 | ) | (212 | ) | |||||||
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Increase in trade payables
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965 | 452 | 981 | |||||||||
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Increase (decrease) in other accounts payable and accrued expenses
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573 | 2,457 | (127 | ) | ||||||||
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Net cash provided by operating activities
|
8,341 | 8,481 | 6,524 | |||||||||
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Cash flows from investing activities:
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Purchase of property and equipment
|
(4,033 | ) | (4,445 | ) | (4,481 | ) | ||||||
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Proceeds from sale of property and equipment
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1,733 | 1,050 | 641 | |||||||||
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Investment and loans/Repayments in affiliate
|
(669 | ) | (1,740 | ) | (1,490 | ) | ||||||
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Acquisition of Subsidiary (a)
|
(251 | ) | ||||||||||
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Purchase of activity (b)
|
(3,125 | ) | ||||||||||
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Proceeds from sale of investments in previously consolidated subsidiaries (c)
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- | 39 | - | |||||||||
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Net cash used in investing activities
|
(6,345 | ) | (5,096 | ) | (5,330 | ) | ||||||
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
|
Year ended December 31,
|
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|
2012
|
2011
|
2010
|
||||||||||
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Cash flows from financing activities:
|
||||||||||||
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Receipt of long-term loans from banks
|
11,670 | 8,384 | 5,090 | |||||||||
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Repayment of long-term loans from banks
|
(12,253 | ) | (8,937 | ) | (7,016 | ) | ||||||
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Repayment of long-term loans from others
|
- | (1,071 | ) | (1,122 | ) | |||||||
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Dividend paid to non-controlling interest
|
(1,215 | ) | (1,594 | ) | (2,250 | ) | ||||||
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Proceeds from issuance of shares and exercise of warrants, net
|
1,945 | 281 | 57 | |||||||||
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Short-term bank credit, net
|
(345 | ) | (1,002 | ) | 2,656 | |||||||
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Net cash used in financing activities
|
(198 | ) | (3,939 | ) | (2,585 | ) | ||||||
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Effect of exchange rate changes on cash and cash equivalents
|
419 | (211 | ) | 415 | ||||||||
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Increase (decrease) in cash and cash equivalents
|
2,217 | (765 | ) | (976 | ) | |||||||
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Cash and cash equivalents at the beginning of the year
|
1,468 | 2,233 | 3,209 | |||||||||
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Cash and cash equivalents at the end of the year
|
$ | 3,685 | $ | 1,468 | $ | 2,233 | ||||||
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(a)
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Acquisition of subsidiary:
|
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Property and equipment
|
$ | 22 | $ | - | $ | - | |||||||
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Technology
|
58 | - | - | ||||||||||
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Goodwill
|
304 | - | - | ||||||||||
|
Minority Interest
|
(133 | ) | - | - | |||||||||
| $ | 251 | $ | - | $ | - | ||||||||
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(b)
|
Purchase of activity:
|
||||||||||||
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Working capital
|
$ | 27 | $ | - | $ | - | |||||||
|
Property and equipment
|
112 | ||||||||||||
|
Customer list
|
1,364 | ||||||||||||
|
Goodwill
|
1,669 | - | - | ||||||||||
|
Accrued severance pay, net
|
(23 | ) | - | - | |||||||||
|
Employees accruals
|
(24 | ) | - | - | |||||||||
| $ | 3,125 | $ | - | $ | - | ||||||||
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
|
Year ended December 31,
|
|||||||||||||
|
2012
|
2011
|
2010
|
|||||||||||
|
(c)
|
Proceeds from sale of investments in previously consolidated subsidiaries:
|
||||||||||||
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The subsidiaries' assets and liabilities at date of sale:
|
|||||||||||||
|
Working capital (excluding cash and cash equivalents)
|
$ | - | $ | 32 | $ | - | |||||||
|
Non-controlling interests
|
- | 426 | - | ||||||||||
|
Loss from sale of subsidiaries
|
- | (110 | ) | - | |||||||||
|
Receivables for sale of investments in subsidiaries
|
- | (309 | ) | - | |||||||||
| $ | - | $ | 39 | $ | - | ||||||||
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
ADDITIONAL INFORMATION
U.S. dollars in thousands
The following table reconciles the GAAP to non-GAAP operating results:
Adjusted EBITDA
|
Year ended December 31,
|
||||||||||||
|
2012
|
2011
|
2010
|
||||||||||
|
Unaudited
|
||||||||||||
|
GAAP Net income as reported:
|
$ |
1,637
|
$ | (8,486 | ) | $ | 1,958 | |||||
|
One time charge attributable to efforts to expand services to Israeli insurance companies
|
||||||||||||
|
Financial expenses, net
|
1,628 | 1,779 | 1,976 | |||||||||
|
Tax on income
|
861 | 2,383 | 1,524 | |||||||||
|
One time charge attributable to efforts to expand services to Israeli insurance companies
|
- | 486 | ||||||||||
|
Loss from discontinued operations, net
|
995 | |||||||||||
|
Stock based compensation expenses
|
265 | 515 | 121 | |||||||||
|
Depreciation, amortization and impairment
|
5,198 | 12,710 | 5,568 | |||||||||
|
Non-GAAP Adjusted EBITDA
|
$ |
10,584
|
$ | 9,387 | $ | 11,147 | ||||||
Non GAAP Net income
|
Year ended December 31,
|
||||||||||||
|
2012
|
2011
|
2010
|
||||||||||
|
Unaudited
|
||||||||||||
|
GAAP Net income as reported:
|
$ |
1,637
|
$ | (8,486 | ) | $ | 1,958 | |||||
|
amortization and impairment of intangible assets
|
2,168 | 9,535 | 2,752 | |||||||||
|
Loss from discontinued operations, net
|
995 | |||||||||||
|
Stock based compensation
expenses
|
265 | 515 | 121 | |||||||||
|
non-cash tax expenses (income) resulting from timing differences
relating to the amortization of acquisition-related intangible assets
and goodwill
|
819 | 2,365 | 604 | |||||||||
|
Non-GAAP Net income
|
$ |
5,884
|
$ | 3,929 | $ | 5,435 | ||||||